Business
Mar. 13—Illinois' future economic prospects are a mixed bag, despite its strong farm economy and all the ingredients, including the city of Chicago, for a healthy business climate.
Plenty of downsides threaten its opportunities, including the state's heavy long-term debt, tough competition for its manufacturers, and population issues that pose problems for the future of higher education.
Those are some of the conclusions in a "State of Illinois Forecast Report" done by Moody's Analytics and recently released by the Illinois Commission on Economic Forecasting & Accountability.
The study analyzes various sectors of the Illinois economy from a long-term standpoint. The hemming and hawing it reveals reflects the nature of trying to predict future results based on current factors.
On the positive side, Moody's speculated that Illinois will "continue to diversify into service-providing industries. It further contends that Chicago will "develop as the transportation and distribution center for the Midwest" and "increasingly cultivate its tech industry."
But there are challenges ahead.
"Weak demographic trends and deep-rooted fiscal problems, such as mounting pension obligations and a shrinking tax base, represent the biggest hurdles to the longer-term outlook," the report states.
Interestingly, Moody's touted the state's cannabis industry as a potentially major contributor to Illinois' economic engine.
Ignoring the social costs of legalization, Moody's said "Chicago is well-situated to nurture cannabis cultivators, processors, retailers and testing labs."
"Chicago already has strong ties to the industry, as it is home to three of the five biggest public companies in the U.S. that grow and sell cannabis," the report states.
The report highlights Chicago's role as an economic driver in the areas of professional and business services, financial services, tourism and transportation.
It characterized Chicago as the "world capital of futures trading" and that its "central location and extensive transportation network add to its appeal, particularly for companies that need to move their workers around the country and the world."
It said tourism in Illinois is trying to crawl "out of a deep hole" after the coronavirus lockdown but is expected to "outperform other parts of the economy in future years."
As for transportation/distribution, it will "remain an integral part of the economy and help drive growth."